What is the imprest system?

A fixed float that gets restored to the same amount each period. You start with, say, $500. You spend $200 across the period, so the tin holds $300 and $200 of receipts. You reimburse exactly $200 and you are back at $500. Because the total never changes, cash plus receipts should always equal the float — which gives you something to check against.

How much should the float be?

Enough to cover a normal period without constant top-ups, and no more than you would be comfortable losing. A few hundred dollars suits most small businesses. If you are reimbursing weekly, the float is too small. If most of it is still sitting there at period end, it is too big.

What if the tin does not reconcile?

Check for a missing docket first — that is the usual cause. Then check the arithmetic on the sheet, and whether a payment was recorded twice. If it still does not reconcile, record the shortfall as a cash discrepancy rather than adjusting the float to hide it. A float that quietly absorbs discrepancies stops being a control.

Do I need a tax invoice for every petty cash purchase?

No. For purchases of $82.50 including GST or less you do not need a tax invoice to claim the GST credit — but you do need a record showing what it was for and that it was a business purchase. At $82.50 and above you need a valid tax invoice like any other purchase. Keep the dockets either way.

Which petty cash purchases have GST?

Most do, but not all. Basic food is generally GST-free, which catches out anyone buying milk, fruit or bread for a staff room. Flag the row N in this template for GST-free items and the GST column stays at zero. Claiming GST on a GST-free purchase overstates your credits at BAS label 1B.

How long do I keep the receipts?

At least five years, along with the sheets themselves — the ATO’s general record-keeping requirement for business records. Scanning the dockets at the end of each period is worth the two minutes, because thermal receipts fade well inside five years.

Does petty cash go into my general ledger?

Yes. Each reimbursement is posted to the ledger, split across the expense accounts the payments were coded to, with the GST separated out. Our general ledger template has accounts and GST codes set up for exactly that.

FREE EXCEL TEMPLATE Last updated 28 August 2026

Petty cash book that actually reconciles

Run petty cash on the imprest system — the float is topped back up each period, so the cash in the tin plus the receipts always equals the float. GST is worked out at one eleventh, and the reconciliation line tells you when the tin is short.

Petty cash book template

Excel (.xlsx) · 2 sheets · 60 entries · no signup

Imprest float with a running balance

GST calculated at 1/11th on taxable purchases

Tin-count reconciliation that must read $0.00

Reimbursement amount calculated for you

General information only, not tax or accounting advice.

This template is general information for Australian businesses. GST treatment and substantiation requirements depend on your circumstances — confirm with your accountant or a registered BAS agent. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

References HR Hub disclaimer Modern Awards Fair Work

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What's in the petty cash template

A float, a log, and a count that has to agree with both.

Float amount

Set it once. Everything else works from it — the running balance, the reconciliation and the reimbursement figure.

60 entry rows

Date, receipt number, who it was paid to, the account, and the GST-inclusive amount.

Automatic GST

Flag a row Y and the GST column fills at one eleventh. Flag it N for GST-free purchases and it stays at zero.

Running float balance

How much should be left in the tin after each payment, carried down the sheet.

The reconciliation line

Cash counted plus total paid out less the float. It has to read $0.00, and it is a formula so it cannot be fudged.

Reimbursement amount

The total paid out — the exact figure to put back in the tin to restore the float and start the next cycle.

The petty cash sheet

A $500 float, five payments out, and the balance that should be sitting in the tin.

Date	Receipt #	Paid to / description	Account	GST?	Amount	GST	Float balance
02/07/2026	PC-101	Milk and sugar — staff kitchen	General expenses	Y	38.50	3.50	461.50
04/07/2026	PC-102	Australia Post — parcel	Office expenses	Y	22.00	2.00	439.50
08/07/2026	PC-103	Fresh fruit — staff room	General expenses	N	44.00	0.00	395.50
15/07/2026	PC-104	Taxi — client meeting	Travel	Y	31.90	2.90	363.60
22/07/2026	PC-105	Cleaning supplies	Cleaning	Y	66.00	6.00	297.60

The fruit on 8 July is flagged N because most basic food is GST-free. Claiming GST on it would overstate your credits at BAS label 1B.

The $82.50 rule worth knowing

Petty cash is the one place the tax-invoice requirement relaxes — which is exactly why it needs a proper log instead.

Under $82.50 including GST

You do not need a tax invoice to claim the GST credit. You do still need a record showing what the purchase was and that it was for the business.

$82.50 and over

You need a valid tax invoice from the supplier to claim the GST credit, the same as any other business purchase.

The log is the record

For small purchases, this sheet plus the docket is the substantiation. A tin with no log behind it will not support the credits claimed from it.

Five-year retention

Keep the sheets and the receipts for at least five years, like the rest of your business records.

Why the imprest system is worth the discipline

Under an imprest float the tin is restored to the same amount every period, so the arithmetic never changes: cash counted + receipts = the float. Any other result is a discrepancy you can investigate immediately, while people still remember the week. A tin that is simply topped up when it looks empty gives you nothing to check against.

How to run petty cash properly

1. Set the float

Pick an amount that covers a normal period without constant top-ups. A few hundred dollars suits most small businesses.

2. Log every payment

Every time money leaves the tin, a row goes in the sheet and the docket goes in the envelope. No exceptions — this is where petty cash usually fails.

3. Count the tin

At the end of the period, count what is left. Cash plus total paid out must equal the float.

4. Reimburse back to the float

Put back exactly the total paid out. The tin is at the float again and the next period starts clean.

Count the tin every period, not just when it looks empty. A float that never quite reconciles is telling you something worth knowing early.

Who uses a petty cash book

Cafés, venues and shops

Where small cash purchases happen weekly and would otherwise never reach the books at all.

Multi-site businesses

A float per site, each reconciled separately, so a discrepancy points somewhere specific.

Bookkeepers tidying a cash-heavy file

Giving a client a structure that produces substantiation instead of a shoebox in May.

For accountants & bookkeepers

Do you look after cash-heavy, shift-based clients?

Cafés, venues and shops are where petty cash, casual rosters and award penalty rates all land on the same bookkeeper. Advisors who bring those clients onto RosterElf earn recurring monthly income for every employee those clients manage.

Recurring monthly income

$1.00–$2.00 per active employee

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Definitions

Plain-English explanations of the terms used on this page.

Tax invoice

What tax invoice means for an Australian business.

Learn more

GST

What gst means for an Australian business.